Midterm 1 Flashcards
What is Process Design?
Configuring inputs and resources in a way that provides value, enhances quality, and is productive.
What is Process Management?
The act of executing and controlling the productive functions of a firm.
What is Process Control?
The act of monitoring a process for its efficacy.
What is Process Improvement?
A proactive effort to enhance process performance
What is Outsourcing?
The act of moving production to a supplier.
What is Nearsourcing?
Moving production geographically closer to where products are sold.
What is Sustainability?
Proactively managing to save resources and to “green” production.
Describe Supply Chain Management
Firms cooperating to create value for customers.
Describe Operations Management
Managing transformation processes to convert inputs into products and services.
What are three primary flows of a supply chain?
Product flows, monetary flows, and information flows.
Why are Service Supply Chains more complex?
The customer is the buyer and the supplier
Describe Combining supply chain and operations
Moving internal operations to external suppliers, thus the transformation occurs from both us and the suppliers
What the Four I’s?
Impacting, improving, innovating, and integrating.
What is Upstream collaboration?
Working and collaborating with suppliers
What is Porter’s Generic Strategies?
Cost, Differentiation, and Focus
Describe Fisher’s Supply Chain Alignment Model
Efficient Supply Chains and Function Products - Match
Responsive Supply Chains and Interactive Products - Match
Define agility
The ability of a supply chain to respond quickly to short-term market changes.
Define adaptability
The capability to adjust a supply chain’s design (i.e., the supply network, manufacturing capabilities, and distribution network) to meet major structural shifts in the market.
Define Order Winners
Those attributes that differentiate a company’s products.
Define Order Qualifiers
Necessary attributes that allow a firm to enter into and compete in a market; a firm’s strategy must account for these necessities.
Define Dynamic Capabilities
Abilities that allow a firm to adapt quickly to market changes.
What is a transactional relationship?
A relationship in which the buyer has many supplier choices, does not need to share internal company information during the exchange, is purchasing a noncritical item, does not require technology innovation from the supplier, and does not expect to experience shortages in supply.
What is a complementary relationship?
A relationship that occurs when companies understand that their core competencies need another firm’s competencies in order to maintain world-class service.
What is a synergistic relationship?
A relationship between two companies who are committed to work together in a way that the result is greater than the sum of the individual parts.
Define Profit impact
The result of either the sheer volume of spend for a particular item or the unique added value from an item.
What does Increasing profitability through improved quality mean?
By providing better quality products that don’t cost you more to purchase, you can increase your selling price and increase profitability
Define Leverage items with regard to profit impact and supply risk
A purchased item that has the potential to affect profit, typically because it is associated with a high level of expenditures while also having many qualified sources of supply.
Define Critical items with regard to profit impact and supply risk
A purchased good that can have a big effect on profitability but only has a few qualified suppliers.
Define Routine items with regard to profit impact and supply risk
A basic item or supply.
Define Bottleneck items with regard to profit impact and supply risk
A purchased item with few alternate sources of supply, typically due to complex specifications requiring complex manufacturing or service processes, new technology, or untested processes.
When is Price Analysis useful?
This analysis is most useful when there are many suppliers available in the marketplace
When is Cost Analysis useful?
When price analysis is impractical or when price analysis alone does not allow a buyer to reach the conclusion that a price is fair and reasonable
When is Total Cost of Ownership Analysis useful?
When you want to identify all of the costs in your analysis of a purchase, not just the purchase price
How do you calculate an effective price?
Take the difference of time between offers, calculate the daily cost of capital (annual divided by 365)
Multiply number of days earlier x daily cost of capital x purchase price
Add to purchase price
What are the Total Cost of Ownership Categories?
Purchase Price, Acquisition Costs, Ownership Costs, Postownership Costs
